Investing for future generations The Octopus AIM Inheritance Tax Service invests in a portfolio of carefully-chosen companies that are expected to qualify for relief from inheritance tax.

The Alternative Investment Market (AIM) is the world’s most successful market for fast-growing smaller companies. It features lots of well-established businesses too. Our Smaller Companies team finds AIM-listed companies that are profitable and pay dividends. However, most important is that these companies are expected to qualify for Business Property Relief (BPR). As long as shares have been held for at least two years and are still held when the investor dies, they can be left to their beneficiaries free from inheritance tax. Visit ‘BPR explained’ to find out more.

Please remember, this investment places your capital at risk, and you could get back less than you originally invest. Make sure you look at the ‘Explaining the risks’ section below and please read the product brochure for full details of fees, charges and risks.

Reasons to consider investing
  • Potential for growth and dividends: The Alternative Investment Market is home to a wide variety of companies that offer the potential for growth and dividends. The market has had some tremendous success stories over the years.
  • A simple process: This is an investment in shares that we select for you. This means there are no complicated legal structures (as with a trust) and no medical underwriting (as with an insurance policy).
  • More of your wealth can be passed on to your family: The Octopus AIM Inheritance Tax Service invests in companies that are expected to qualify for relief from inheritance tax. It can be an effective way to reduce or potentially even eliminate an inheritance tax bill that your family may otherwise have to pay on your estate.
  • Speed: Traditional estate planning solutions can take seven years before they become exempt from inheritance tax. However, an investment in this service can become 100% inheritance tax exempt after just two years.
  • Access: Investors can ask us to sell shares at any time. We can usually sell shares within a week, however, in some instances it could take significantly longer.
Explaining the risks

You may lose money
As the Octopus AIM Inheritance Tax ISA targets long-term growth from a portfolio of AIM-listed shares, it has a correspondingly higher level of risk. The growth in value of your investment depends on the performance of the companies in your portfolio. We do not offer any guarantees about the growth you will achieve, and it’s important to understand that the value of your investments can go down as well as up, so you may not get back the full amount invested.

On a day-to-day basis, the value of AIM-listed companies can fall or rise more sharply than shares in larger companies listed on the main market of the London Stock Exchange.

Past performance is no guide to the future
The past performance of an investment is not a reliable indicator of future results. Nor should you rely on any forecasts made about future returns.


The investment may be difficult to sell

The shares of AIM companies tend to be harder to sell than the shares of large companies, such as BP or Vodafone. This means that if you ask us to sell shares, we may not be able to sell them immediately and you may have to accept a price that is less than the real value of the companies.


Tax rules can change

Rates of tax, tax benefits and tax allowances are based on current legislation, interpretation based on case law and HMRC practice. We can’t guarantee that the tax rules won’t change in the future. Also, the value of tax reliefs depend on your own personal circumstances.

BPR is assessed on a case-by-case basis
We cannot guarantee that the investments we make will qualify for BPR in every case in the future. HMRC will only conduct a BPR assessment after the death of an investor, to confirm whether the companies invested in qualify for BPR at that time. If you borrow money to invest in the Octopus AIM Inheritance Tax ISA, the investment is unlikely to qualify for relief from inheritance tax.

Related Documents

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Octopus AIM Inheritance Tax Service brochure

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Octopus AIM Inheritance Tax Service application form

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Octopus inheritance tax products terms and conditions

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Octopus AIM Inheritance Tax Service factsheet August 2017

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Important information

Estate planning investments may not be suitable for everyone and it’s important that you fully understand the risks involved. We do not offer investment or tax advice, and we always recommend you talk to a financial adviser before making investment decisions.